China’s Hengli Group is lining up an investment of CNY 9.2bn ($1.3bn) in its reborn former STX Dalian shipyard at Changxin Island.

The company said on social media platform WeChat that its subsidiary, Hengli Heavy Industry, will increase its shipbuilding capacity to 1.8m dwt each year, as well as 1.8m tonnes per year of steel processing.

An agreement was signed on 7 July between Hengli and the local governments of Dalian City and Changxin Island regarding the investment, ICIS reported.

The cash will boost the yard’s ability to build VLCCs and VLGCs, as well as bulkers, container ships and floating offshore storage and drilling facilities.

Hengli Heavy joined the shipbuilding market late in 2022 when parent company Hengli Group signed up for four 20,000-dwt bulker newbuildings to transport coal from Qinhuangdao to Dalian.

The shipyard was formerly owned by South Korea’s STX Group.

STX Dalian collapsed and exited shipbuilding in 2013.

It was “resuscitated” when Hengli Group paid CNY 1.73bn to acquire all the assets.

Earlier this month, TradeWinds reported that active sale-and-purchase player Winning International Group had turned to the newbuilding market for a series of big bulkers.

The Singapore-based company ordered six 325,000-dwt VLOCs at Hengli Heavy. It hopes to take delivery in 2026 and 2027.

In May, Veritas Shipmanagement of Greece continued its fleet renewal with a fresh bulker order at the yard.

The low-profile company contracted two 82,000-dwt kamsarmax bulk carriers.